The expansion of the Panama Canal is expected to have
far-reaching economic benefits for the U.S. maritime industry. But the extent of those benefits may
depend on whether the state and federal government provide enough financial
support to deepen the Mississippi River from its current depth, around 45 feet, to a depth of 50 feet.

According to a landmark study released by the Big River
Coalition earlier this year, deepening the river by another 5 feet could generate
billions for the national economy and create thousands of jobs. And considering
Louisiana's geographic and economic relationship to the Mississippi River, it's
unlikely any other state would benefit more from the plan's approval.

What happened: In
August, economist Timothy Ryan Ph.D published a report titled "The Economic
Impact of Deepening the Mississippi River to 50 feet." In it, Ryan claimed that
every dollar spent on the project would generate more than $89 in benefits. As the
Panama Canal expands to accommodate larger ships, he wrote, the United States
would do well to expand its biggest river's shipping capacity in turn.

Ryan estimated the cost of the dredging project to be $300
million initially and $90 million in annual maintenance. If successful,
deepening the river by 5 feet could generate $11.5 billion in benefits, create
16,911 jobs nationally, and produce $849.5 million in income for American
workers, according to the report.

As for the state of Louisiana, Ryan estimated it would gain
$146.8 million in direct spending and $115.6 million in indirect spending by
2024. Louisiana residents would see a $50.2 million boost in annual income and
an influx of 908 jobs, he wrote. By enabling vessels to carry greater amounts of
cargo, and by allowing the river to accommodate bigger ships, deepening the
country's maritime highway to the Midwest seemed to Ryan and others to be more
than economically justified.

"It's really a no-brainer," U.S. Sen. David Vitter, R-La., told
NOLA.com on the day the study was released. "We absolutely need to do this."

What's next: Whether
the deepening of the river receives approval will depend on the government's
reception to the Water Resource and Development Act (WRDA) Bill in 2014.

The WRDA Bill, which goes before the Senate and the House
every two years, dedicates funding for a variety of river-related projects. In
1986, it authorized the Mississippi River to be deepened to 50 feet. But Sean
Duffy, the executive director of the Big River Coalition, said that economic
justifications for the deepening had to be updated and resubmitted.

The current WRDA bill is up for consideration in early 2014.
Should the deepening project receive approval, Duffy estimated that actual dredging would
commence in 2017 or 2018.

"Huge ports along the East Coast are already being
deepened to match the future depth of the Panama Canal," he said. "We're hoping
for the same in Louisiana."